BNB, the token of BNB Chain, fell in the past 24 hours even after the blockchain burned 1.44 million BNB, worth around $1.63 billion, by sending them to an inaccessible address and thus removing them from circulation.
The coin fluctuated between $1,122 and $1,154 over the period, ultimately slipping to $1,137.
The recent burn is part of BNB Chain’s 33rd quarterly reduction, aimed at driving long-term scarcity by eventually shrinking the total supply to 100 million tokens. After the latest burn, about 137.7 million BNB remain in circulation.
The burn process “underscores the asset’s structural strength and long-term scarcity and therefore value creation,” said David Namdar, CEO of the largest publicly traded BNB treasury firm, CEA Industries.
Despite the scale of the burn and a short-term rise right after it happened, traders have shown caution. As many as 100,000 BNB changed hands in one hour over the past day, but that volume spike failed to see the token top the resistance level at $1,147, according to CoinDesk Research’s technical analysis data model.
An earlier decline to $1,122 saw support hold, suggesting buyers are stepping in at lower levels, though upside momentum remains weak.
Traders face a mixed outlook. On one hand, the deflationary mechanics could eventually tighten supply and see a price boost if demand grows. On the other, technical charts show price stuck in a narrow range, with resistance proving stubborn.